Wall Street Journal on Sony.... Ouch!!!

[NJ5]

Kyros said:

My point? There's no useful comparison with Microsoft here.

Of course there is a useful comparison to be made. I won't argue that the gaming division of Sony is in much better shape than the gaming division of MS. (Although only having one horse that is at its peak is not exactly a great strategy) But the poster I was answering to was saying that Sony cannot loose money on each console because they are a public company. Which is bullshit as can be clearly seen by the Arcade of the 360.
The question is more if you can make the money you loose back by selling games and peripherals. This was clearly not the case with the PS3 when it launched when the price was set to grab critical marketshare. (Which may also be the reasoning behind the Arcade). If you do this you need to have a sound business to stand on. But keeping the 400$ price tag at christmas was bone-headed.

I agree with some parts of your post, but keeping the price at $400 was not bone-headed. I can assure you there's a lot of gloom inside Sony right now, so executives don't want to assure 1 more billion dollars in losses. Especially when they promised they'd focus on profitability to shareholders. Even without a price cut, profitability is already hard to attain, a price cut would make it impossible for one more year at least...